HP has confirmed that it is going to sue Mike Lynch, founder of Autonomy and Sushovan Hussain, the ex CFO of Autnomy. The company has stated in court filing that the shareholders of HP had agreed to sue Sushovan Hussain and Mike Lynch.
This has taken the two years war of words between HP and former management of Autonomy to a new heights.
Autonomy, which was once the darling of the UK tech sector, was bought by HP for $11.7 billion which also was the biggest ever acquisition of a UK tech company. However, this turned out to be a disastrous acquisition because HP had to write off losses of $8.8 one year later over accounting irregularities by the former management of Autonomy, which HP claimed resulted from disclosure failure and misrepresentation by Mike Lynch and Mr. Hussian.
The allegations of HP are under investigation by Department of Justice in the US and Serious Fraud Office in UK.
The HP was also sued by shareholders but this was settled by the company with the shareholders.
The main accusation from HP focuses on the claim that Autonomy, a software company, had misappropriately booked revenue on reseller sales and the company also failed to disclose the level of sales from low-margin hardware which was used to drive the software business of the company.